Tech

Apple Working on Spotify-Like Service and iTunes Android App, Report Says

Apple may have revolutionized the music business with iTunes, but in the face of users' changing music-consumption habits — namely the rise of streaming services — the Cupertino, Calif. company will reportedly shake things up once again.

Apple is preparing to launch a new on-demand music-streaming service that would rival Spotify, according to music magazine Billboard.

The company took its first major step into streaming last year with the launch of iTunes Radio, a service similar to Pandora that allows users to listen to, and curate radio stations based on genres and types of artists. They also have the option to buy any song being played.

By moving toward a model similar to Spotify, as the report suggested, Apple could effectively offer music fans more tunes at a lower price.

An anonymous source from one major label told Billboard, "They are feeling out some people at labels on thoughts about transitioning its customers from iTunes proper to a streaming service … So when you buy a song for $1.29, and you put it in your library, iTunes might send an email pointing out that for a total of, say, $8 a month you can access that song plus all the music in the iTunes store. It's all in the 'what if' stage."

Such a move on Apple's part would make sense, considering recent trends. According to a January report from Nielsen, overall U.S. music sales are down by 6.3%, but music-streaming services have grown by 32% since 2012.

The International Federation of the Phonographic Industry released on Tuesday a report that said global revenues from subscription- and advertising-supported streams are now responsible for 27% of digital revenues, a 14% increase from 2011.

The report added that revenue from subscription and music-streaming services jumped by 51% in 2013, passing the $1 billion mark for the first time.

Given such compelling data, Apple's reported move to a Spotify-like service is less a question of "if" and more a question of "when."

What's more, citing three sources with knowledge of the developments, Billboard reported that Apple is mulling plans to offer an iTunes app for Android users.

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